For the 13th consecutive year, officials expect to present a
2002 budget that shows no increase in the tax for municipal
services. Township Manager John Lov ell has submitted his
recommendations for a budget that represents a 3.24 percent
increase over the prior year, but no increase in the municipal
purposes tax rate due to increased ratables.

If approved by the council, the rate for municipal services
would be $.379 per $100 of assessment or $379 per $100,000 of
assessment. The municipal tax is but one part of the total property
tax which also includes the largest portion for the school tax. The
school tax will be determined in the April school vote.

The overall tax also includes taxes for county services, county
and local open s pace taxes and taxes for local recreation and a
special pension plan for emergency volunteers.

"The revenue picture in Randolph is surprisingly strong given
our nation's recession and state budget crises," Lovell wrote in
his Feb. 7 report to the council. "Gov. (James) McGreevey's recent
assurances on maintaining 2001 state budget allocations for
municipal governments is reflected in this document."

State aid comprises 11.5 percent of the township's budget.
Figures could change after municipalities are advised of actual
amounts they might receive from the state, but it appears that
Randolph has sufficient reserves to adjust the budget if necessary,
and still have no tax boost, Lovell said.

Ratable Boost

Lovell said the township managed to accrue a record surplus
during 2001 primarily from added and omitted taxes resulting from
new ratables, which grew by $50,321,824, representing a 1.88
percent increase. Since one penny on the tax rate raises $5,032 in
revenues, the township realized a total of $190,712 increase in re
venues.

Planning Board receipts decreased by 24 percent during 2001 and
Lovell expects t hey will continue to decrease, as there is less
land available for development. Residential development can add to
a municipality's coffers by increasing the tax base and increasing
revenues during the time of development as has occurred in Randolph
during recent years.

However, most officials recognize that the municipal tax rate is
only a small portion of people's real estate taxes and that new
residential developments that add school-age children to the system
ultimately cause increased taxes.

In view of the state's budget problems, both for the current
year and already anticipated for next year, as well as a discomfort
with the possibility that the country could be on the verge of a
more serious recession, Lovell said Randolph could be facing
decreased revenues in the near future.

"Typically, managers and chief financial officers recommend
gradual tax rate in creases over a period of years," wrote Lovell.
"This would have been the perfect year to introduce this policy had
our nation's economy and most notably the Sept. 11 attack on the
World Trade Center not occurred."

Lovell wrote that he was "mindful that many Randolph family
incomes have been affected by these events and my decision on this
year's tax rate is guided accordingly."

"I cannot in good conscience call for a tax increase given the
recession and the township's record surplus level," he wrote. "The
rate will be held at $.0379. I temper this good news with the
realization that our revenue picture will most likely decline in
2003 and beyond as development slows."

In addition to the 37.9-cent tax rate to support the operating
budget, taxpayers pay three other rates that were previously
approved by voters through special referendum. They are: a half
cent per $100 of assessed value for the Length of Service Award
Program or LOSAP, a program that provides benefits to fire and
squad volunteers; two cents per $100 of assessed value to preserve
open space; and a penny per $100 of assessment for recreational
programs.

All three special purposes tax rates will remain the same as in
the previous year.

The proposed budget also contains a capital improvement plan in
the amount of $1,582,300, with $1,002,000 being paid for from
various grants and funds including the Parks Trust, utility funds,
developer escrow fees, capital reserves, and two state grants that
were obtained in 2001.

The net result will be that $580,300 of the capitol improvements
will be paid for through general taxation.

Among capital projects planned for 2002 are a road overlay
program, land acquisition, improvements to Millbrook Avenue, park
improvements and equipment, equipment for the public works
department, a new Fire Chief's vehicle, improvements to the trail
system, renovations to the municipal building, restoration of
Posner Pond, new area network wireless communications system for
the police department, and various water and sewer
improvements.

The mayor and council are reviewing the manager's proposals and
could make changes before a final vote.

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